3i exits Geka in €260m deal

The GP stated its total proceeds were €178m, including €102m for listed investor 3i. 3i had already received €23m in proceeds during the company's refinancing last year.

The investor stated that during its ownership, Geka grew through expansion into Asia and Latin America, opening a production facility in São Paolo in 2015 and sales and sourcing offices in Shanghai and Hong Kong. An expansion of production capabilities in the US also took place.

Geka launched a healthcare division in 2014 and acquired competitor Oeka, a German manufacturer of plastic and metal components, in 2015. 3i also made changes to the company's advisory board by hiring chairman Yves Dominioni, former CEO of Rexam Beauty and Pharma. Non-executive directors Alain Chevassus, who led a number of packaging businesses, and Günter Hauptmann, previously on the board of Siemens VDO, also joined the company.

Previous funding
In February 2012, 3i bought a majority stake in Geka from mid-market investor Halder.

The company underwent a €95m debt refinancing in December last year, resulting in a dividend for shareholder 3i and its funds. The senior-only package was arranged by Bank of Ireland, BayernLB, Commerzbank, LBBW and SEB. The lenders provided a €75m term-loan facility and a €20m revolving credit line. The refinancing saw 3i reap a total of €40m via a dividend recap, including €23m returned to the firm itself.

Halder bought Geka back from Equita Management in July 2007 after selling it to the firm in January 2005 for €78m. Halder first invested in the company during an MBO in 1999, with the investor taking a 90% stake.

Company
Founded in 1925, Geka is a manufacturer of brushes, applicators and packaging systems for the cosmetics and pharmaceutical industries. The company is located in Bechhofen, with additional manufacturing and sales branches in Europe, the US, South America and Asia.

The business has three divisions: Geka Beauty, Geka Healthcare and Geka Accessories. It employs 900 people. Geka is expected to achieve revenues of €150m and EBITDA of €27m in 2016.

People
3i – Ulf von Haacke (managing director, head of industrials).
Geka – Amaury de Menthière (CEO).

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